Bank of England and Federal Reserve Knew About – and Encouraged – Massive Interest Rate Manipulation by Big Banks

Central Banks Go to Great Lengths To Prop Up Insolvent Banks … and Put Lipstick On a Pig

We noted in 2012 that bot the Bank of England and Federal Reserve knew about the Libor interest rate rigging scandal by the big banks.

Newly-released minutes of the meeting of the Fed’s Open Market Committee confirm that the Fed knew about the Libor interest rate manipulation.

And Bloomberg reported earlier this month:

Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms, a practice at the heart of a widening probe into alleged market manipulation, according to a person who has seen notes turned over to regulators.

***

Traders representing some of the world’s biggest banks told officials at the meeting that they shared information about aggregate orders before currency benchmarks were set, three people with knowledge of the discussion said. The officials said there wasn’t a policy on such communications and that banks should make their own rules, according to the people.

This isn’t some minor case of stretching the truth a little bit … The Libor interest rate scandal was the biggest financial scandal in world history:

  • Even though RBS and a handful of other banks have been fined for interest rate manipulation, Libor is still being manipulated. No wonder … the fines are pocket change – the cost of doing business – for the big banks

Indeed, the Bank of England and Fed have desperately tried to put lipstick on a pig, and have gone to great lengths to prop up insolvent banks.

One of the main ways they have done so is to turn the other way and ignore the massive crimes and manipulations of the big banks.

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  • ahuxley

    Every time I think about Martha Stewart going to Federal prison for making a paltry few hundred thou$and allegedly from insider trading, while I watch these bankster maggots steal trillion$ with total impunity, I just wanna scream. If I correctly recall the prosecutors case against her was weak. Our entire banking/financial/justice/political systems are infested with the scum of the earth.